Monday, October 4, 2010

Washington Mutual, J. P. Chase, FDIC and Providian - A consumer question

Since the failure of Washington Mutual and seizure by the FDIC on 8/25/08 consumers have asked questions to no avail. Now consumers are asking even more questions, and attempting to trace their assets. I have a legitimate question for all of them in that I'd love to know how J. P. Chase wound up with Providian Financial accounts in this matter, as according to records on file, Providian Financial ceased to exist in March of 2009 after merger into New American Capital, Inc.

New American Capital, Inc. was not part of Washington Mutual's direct or indirect subsidiaries in their SEC filings for early 2008. This led me to do some additional research into what actually happened to Providian Financial. New American Capital, Inc was a Delaware corporation, so I started my search there. On 11/1/07 - a little less than one year before the FDIC seizure, New American Capital, Inc. was merged into Mercer Acquisition, LLC a Nevada Corporation. Providian Financial accounts would have followed this merger. I contacted the Nevada Division of Corporations and Mercer Acquisition, LLC was dissolved immediately after the merger with New American Capital, Inc.

Dissolved. So what happened to the Providian Financial accounts? And why is J. P. Chase claiming ownership, and collecting on these accounts? Sure, Washington Mutual by merger received the Providian National Bank accounts, but my understanding of this corporate hierarchy was the Providian Financial also owned accounts, including credit card accounts.

I read another consumer question this morning related to another "subsidiary" that appears to have disappeared prior to the seizure also. Perhaps someone out there has answers, but the public is being kept in the dark by everyone concerned in this matter, and the citizens of the United States who had placed their trust and confidence in these organizations are the ones who have suffered losses related to the failure of Washington Mutual Bank, the Purchase and Assignment agreement between the FDIC and J. P. Chase (which as of August 30, 2010 was still not finalized)and the bankruptcy filing of Washington Mutual, Inc. It's definite to the American public, if not to regulators, that there indeed had to be some subterfuge and collusion between these organizations. Anyone with common sense would know a bank isn't seized on one day, sold on basically the same day, and bankruptcy filed the next day by a corporation as huge as Washington Mutual, Inc. without there having been some collusion between these organizations.

The American public wants answers, and I believe it's time for one or more of these companies to provide those answers.

I intend to spend some time in the near future researching all the subsidiaries of WAMU and WMI prior to their seizure. Wonder how many were actually merged out and dissolved, or sold? And wonder where the proceeds from those mergers, acquisitions or sales went? Bet all the misplaced workers who stand to lose their pensions, stock holders, investors and depositors would also like to know that information.

1 comment:

  1. I've followed the transition of corp to corp. It's a spiders web and quite an adventure. The rabbit hole is very deep.

    collusion is putting it mildly.